According to the latest Mid-Market Private Equity study by KPMG UK, transactions involving mid-market private equity investors in the North West of England in the first half of 2024 decreased by almost 13% compared to the same period in 2023. However, the deals completed in the region remained consistent with H2 2023. Against pre-pandemic M&A activity, the figure shows an increase in activity of 25%, indicating a normalization in the market. Nationally, mid-market private equity investment activity in the UK declined by 11% in the first half of 2024, with 321 mid-market transactions being completed, compared to 360 transactions in the same period in 2023.
The North West accounted for 10.9% of all deals taking place in the first half of this year, with the region attracting the largest number of investments outside of the London region, which accounted for 47% of mid-market deals in H1 2024. The UK private equity market overall had 656 deals completed during H1 2024, which was down 20% when compared to 822 transactions in H1 2023.
Commenting on the findings, Richard Stark, head of private equity in the North at KPMG UK, expressed optimism regarding the M&A market in the North West to return to healthier levels of activity. “Both private equity firms and lenders are back in the market looking to complete transactions,” he said. “Our own pipeline in the North West going into the summer is strong, and we’re seeing a greater appetite for transactions, with a notable resurgence of deals across various sectors.”
Looking ahead to the remainder of 2024, “the foundations needed for dealmaking have significantly improved over the last few months, and we expect activity levels in the North West will continue to rise in the second half of 2024,” added Stark.
